Amex Makes It Easier To Pay Your Bill With Points. Here’s Why You Shouldn’t.

There’s a saying that the easiest uses of your points are usually the worst options.

If you ever see a screen pop up at your local store asking if you want to use credit card points for your transaction, don’t do it.

That same logic applies to the new, easier-than-ever-before option to use your Membership Rewards points to pay your credit card bill. This new message popped up when I was paying some bills during my lunch break today.

Unfortunately, using your points this way isn’t a good idea. Let us explain why.

Amex Makes It Easier To Pay Your Bill With Points

Earlier today, I saw this new option on both my Platinum Card^® from American Express and American Express^® Gold Card. A message at the top of the payment screen said: “You can now redeem Membership Rewards^® points towards your balance while making a payment.”

Depending on the available Membership Rewards balance, it’s possible to redeem as many or as few points as you want, up to the full payment amount.

At the bottom of the payment section, after choosing a payment amount, a box next to “Enter Redemption Amount” gives you the option to pay all or part of the bill with points. Your points balance (and its value toward the payment) is conveniently listed next to the checkbox.

Clicking on the “How to Apply Points” link provided further details. Only payments with a same-day payment date have this option, and points are worth 0.6 cents each toward paying your bill.

Why You Shouldn’t Use Your Points This Way

Using your points toward your Amex card’s statement can help you pay down the bill. If you’re short on cash, this could be attractive.

Otherwise, you shouldn’t use your points to pay your bill.

Using your Membership Rewards points to pay off your statement provides just 0.6 cents per point in value. By contrast, we value Membership Rewards points much higher than that: 2.2 cents each. Why the big difference?

There are many ways to redeem Membership Rewards points, and they grow in value as they increase in complexity. Redeeming for a statement credit or a gift card is easy, and you’ll get the least value.

However, learning how to use American Express’ hotel and airline transfer partners can provide much more value. It’s not guaranteed, and it has a learning curve, but you can redeem points fro multiple cents each if you find a good redemption.

For example, you could use 60,000 points to pay a $360 monthly statement, or you could send 60,000 points to one of American Express’ airline partners to book a business-class flight to Europe that costs over $3,000. That’s just one of many examples. We recommend using your points with transfer partners whenever possible.

Hot Tip: Find out your offer, which could be As High As 175,000 Membership Rewards^® points with the Amex Platinum Card. Learn More. Terms apply.

Final Thoughts

American Express is making it easier to use Membership Rewards points when it’s time to pay your card’s monthly bill. While that’s convenient, it’s best to avoid it. There are other ways to redeem your points that can provide much more value on a per-point basis.